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Problem 6-5

Expected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the

Company's ProductsProbability of This

Demand OccurringRate of Return if This

Demand Occurs (%)Weak0.1-35% Below average 0.2 -6 Average 0.4 10 Above average 0.2 35 Strong 0.1 60 1.0

Calculate the stock's expected return. Round your answer to two decimal places.

Calculate the standard deviation. Round your answer to two decimal places.